The committee's centerpiece health care reform — H.481 and H.487 — had stalled in the House Appropriations Committee primarily due to opposition to a sugar-sweetened-beverage tax as a funding mechanism.

"This is a negotiation between the revenue folks, the appropriations folks and myself to see what can we do," Lippert said. "I want to move something forward on health care."

Earlier Thursday, the House Ways and Means Committee heard two revenue options to help pay for the health care reform package. The first would raise $14.6 million by subjecting candy and soft drinks to the state's 6 percent sales tax, adding a new 9 percent meals tax to vending-machine items, increasing the cigarette tax by 33 cents and hiking the tax on other tobacco products.

The second option raises $12.8 million with just a candy and soft drink sales tax, the vending machine tax and an employer assessment.

The committee plans to discuss and possibly vote on the options Friday.

Lippert said the health care reform package contains many of the same elements but with a new revenue scheme.

The health care package still includes increasing Medicaid reimbursements to primary care providers and expanding cost-sharing subsidies to the underinsured. However, other health care providers would not receive the increase. The amount that primary care providers receive would remain largely the same, but the state's contribution to the reimbursement would increase.

"The feds had bumped that (reimbursement) up but then scaled that back," Vice Chairman Rep. Chris Pearson said. "This increases the state money. What we are doing is keeping (primary care providers) at level funding."

In 2017, the legislation would increase the number of people eligible for the subsidies.

Cost-sharing subsidies would expand to Vermonters who are within 200-300 percent of the federal poverty rate. For example, a family of four earning $48,500 to $72,750 or less would be eligible. Residents under the 200 percent level already receive the subsidies.

"The key here is it makes health care more affordable to Vermonters," Lippert said.

Lippert first suggested a cigarette tax increase of $2 to pay for the measures. The committee decided to reduce that amount to 25 cents, Pearson said. Pearson said the amount didn't matter, because Ways and Means ultimately will decide how to pay for the package.

The cigarette tax is $2.75 on each pack.

After Ways and Means, the health care reform package goes to Appropriations.

Lippert said the House could consider the package as soon as next week.